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									H. R. 627



                    One Hundred Eleventh Congress
                               of the
                      United States of America
                                     AT T H E F I R S T S E S S I O N

                          Begun and held at the City of Washington on Tuesday,
                            the sixth day of January, two thousand and nine




                                                   An Act
            To amend the Truth in Lending Act to establish fair and transparent practices
              relating to the extension of credit under an open end consumer credit plan,
              and for other purposes.

                Be it enacted by the Senate and House of Representatives of
            the United States of America in Congress assembled,
            SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
                 (a) SHORT TITLE.—This Act may be cited as the ‘‘Credit Card
            Accountability Responsibility and Disclosure Act of 2009’’ or the
            ‘‘Credit CARD Act of 2009’’.
                 (b) TABLE OF CONTENTS.—
                      The table of contents for this Act is as follows:
            Sec. 1. Short title; table of contents.
            Sec. 2. Regulatory authority.
            Sec. 3. Effective date.
                                       TITLE I—CONSUMER PROTECTION
            Sec.   101.   Protection of credit cardholders.
            Sec.   102.   Limits on fees and interest charges.
            Sec.   103.   Use of terms clarified.
            Sec.   104.   Application of card payments.
            Sec.   105.   Standards applicable to initial issuance of subprime or ‘‘fee harvester’’
                           cards.
            Sec.   106.   Rules regarding periodic statements.
            Sec.   107.   Enhanced penalties.
            Sec.   108.   Clerical amendments.
            Sec.   109.   Consideration of Ability to repay.
                              TITLE II—ENHANCED CONSUMER DISCLOSURES
            Sec.   201.   Payoff timing disclosures.
            Sec.   202.   Requirements relating to late payment deadlines and penalties.
            Sec.   203.   Renewal disclosures.
            Sec.   204.   Internet posting of credit card agreements.
            Sec.   205.   Prevention of deceptive marketing of credit reports.
                               TITLE III—PROTECTION OF YOUNG CONSUMERS
            Sec.   301.   Extensions of credit to underage consumers.
            Sec.   302.   Protection of young consumers from prescreened credit offers.
            Sec.   303.   Issuance of credit cards to certain college students.
            Sec.   304.   Privacy Protections for college students.
            Sec.   305.   College Credit Card Agreements.
                                          TITLE IV—GIFT CARDS
            Sec. 401. General-use prepaid cards, gift certificates, and store gift cards.
            Sec. 402. Relation to State laws.
            Sec. 403. Effective date.
                              TITLE V—MISCELLANEOUS PROVISIONS
            Sec. 501. Study and report on interchange fees.
            Sec. 502. Board review of consumer credit plans and regulations.
                                 H. R. 627—2
Sec. 503. Stored value.
Sec. 504 Procedure for timely settlement of estates of decedent obligors.
Sec. 505. Report to Congress on reductions of consumer credit card limits based on
           certain information as to experience or transactions of the consumer.
Sec. 506. Board review of small business credit plans and recommendations.
Sec. 507. Small business information security task force.
Sec. 508. Study and report on emergency pin technology.
Sec. 509. Study and report on the marketing of products with credit offers.
Sec. 510. Financial and economic literacy.
Sec. 511. Federal trade commission rulemaking on mortgage lending.
Sec. 512. Protecting Americans from violent crime.
Sec. 513. GAO study and report on fluency in the English language and financial
           literacy.
SEC. 2. REGULATORY AUTHORITY.
     The Board of Governors of the Federal Reserve System (in
this Act referred to as the ‘‘Board’’) may issue such rules and
publish such model forms as it considers necessary to carry out
this Act and the amendments made by this Act.
SEC. 3. EFFECTIVE DATE.
     This Act and the amendments made by this Act shall become
effective 9 months after the date of enactment of this Act, except
as otherwise specifically provided in this Act.

     TITLE I—CONSUMER PROTECTION
SEC. 101. PROTECTION OF CREDIT CARDHOLDERS.
   (a) ADVANCE NOTICE OF RATE INCREASE AND OTHER CHANGES
REQUIRED.—
         (1) AMENDMENT TO TILA.—Section 127 of the Truth in
   Lending Act (15 U.S.C. 1637) is amended by adding at the
   end the following:
   ‘‘(i) ADVANCE NOTICE OF RATE INCREASE AND OTHER CHANGES
REQUIRED.—
         ‘‘(1) ADVANCE NOTICE OF INCREASE IN INTEREST RATE
   REQUIRED.—In the case of any credit card account under an
   open end consumer credit plan, a creditor shall provide a writ-
   ten notice of an increase in an annual percentage rate (except
   in the case of an increase described in paragraph (1), (2),
   or (3) of section 171(b)) not later than 45 days prior to the
   effective date of the increase.
         ‘‘(2) ADVANCE NOTICE OF OTHER SIGNIFICANT CHANGES
   REQUIRED.—In the case of any credit card account under an
   open end consumer credit plan, a creditor shall provide a writ-
   ten notice of any significant change, as determined by rule
   of the Board, in the terms (including an increase in any fee
   or finance charge, other than as provided in paragraph (1))
   of the cardholder agreement between the creditor and the
   obligor, not later than 45 days prior to the effective date of
   the change.
         ‘‘(3) NOTICE OF RIGHT TO CANCEL.—Each notice required
   by paragraph (1) or (2) shall be made in a clear and conspicuous
   manner, and shall contain a brief statement of the right of
   the obligor to cancel the account pursuant to rules established
   by the Board before the effective date of the subject rate
   increase or other change.
         ‘‘(4) RULE OF CONSTRUCTION.—Closure or cancellation of
   an account by the obligor shall not constitute a default under
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     an existing cardholder agreement, and shall not trigger an
     obligation to immediately repay the obligation in full or through
     a method that is less beneficial to the obligor than one of
     the methods described in section 171(c)(2), or the imposition
     of any other penalty or fee.’’.
          (2) EFFECTIVE DATE.—Notwithstanding section 3, section
     127(i) of the Truth in Lending Act, as added by this subsection,
     shall become effective 90 days after the date of enactment
     of this Act.
     (b) RETROACTIVE INCREASE AND UNIVERSAL DEFAULT PROHIB-
ITED.—Chapter 4 of the Truth in Lending Act (15 U.S.C. 1666
et seq.) is amended—
          (1) by redesignating section 171 as section 173; and
          (2) by inserting after section 170 the following:
‘‘SEC. 171. LIMITS ON INTEREST RATE, FEE, AND FINANCE CHARGE
             INCREASES APPLICABLE TO OUTSTANDING BALANCES.
    ‘‘(a) IN GENERAL.—In the case of any credit card account under
an open end consumer credit plan, no creditor may increase any
annual percentage rate, fee, or finance charge applicable to any
outstanding balance, except as permitted under subsection (b).
    ‘‘(b) EXCEPTIONS.—The prohibition under subsection (a) shall
not apply to—
          ‘‘(1) an increase in an annual percentage rate upon the
    expiration of a specified period of time, provided that—
                ‘‘(A) prior to commencement of that period, the creditor
          disclosed to the consumer, in a clear and conspicuous
          manner, the length of the period and the annual percentage
          rate that would apply after expiration of the period;
                ‘‘(B) the increased annual percentage rate does not
          exceed the rate disclosed pursuant to subparagraph (A);
          and
                ‘‘(C) the increased annual percentage rate is not applied
          to transactions that occurred prior to commencement of
          the period;
          ‘‘(2) an increase in a variable annual percentage rate in
    accordance with a credit card agreement that provides for
    changes in the rate according to operation of an index that
    is not under the control of the creditor and is available to
    the general public;
          ‘‘(3) an increase due to the completion of a workout or
    temporary hardship arrangement by the obligor or the failure
    of the obligor to comply with the terms of a workout or tem-
    porary hardship arrangement, provided that—
                ‘‘(A) the annual percentage rate, fee, or finance charge
          applicable to a category of transactions following any such
          increase does not exceed the rate, fee, or finance charge
          that applied to that category of transactions prior to
          commencement of the arrangement; and
                ‘‘(B) the creditor has provided the obligor, prior to
          the commencement of such arrangement, with clear and
          conspicuous disclosure of the terms of the arrangement
          (including any increases due to such completion or failure);
          or
          ‘‘(4) an increase due solely to the fact that a minimum
    payment by the obligor has not been received by the creditor
                              H. R. 627—4

     within 60 days after the due date for such payment, provided
     that the creditor shall—
                 ‘‘(A) include, together with the notice of such increase
           required under section 127(i), a clear and conspicuous writ-
           ten statement of the reason for the increase and that
           the increase will terminate not later than 6 months after
           the date on which it is imposed, if the creditor receives
           the required minimum payments on time from the obligor
           during that period; and
                 ‘‘(B) terminate such increase not later than 6 months
           after the date on which it is imposed, if the creditor receives
           the required minimum payments on time during that
           period.
     ‘‘(c) REPAYMENT OF OUTSTANDING BALANCE.—
           ‘‘(1) IN GENERAL.—The creditor shall not change the terms
     governing the repayment of any outstanding balance, except
     that the creditor may provide the obligor with one of the
     methods described in paragraph (2) of repaying any outstanding
     balance, or a method that is no less beneficial to the obligor
     than one of those methods.
           ‘‘(2) METHODS.—The methods described in this paragraph
     are—
                 ‘‘(A) an amortization period of not less than 5 years,
           beginning on the effective date of the increase set forth
           in the notice required under section 127(i); or
                 ‘‘(B) a required minimum periodic payment that
           includes a percentage of the outstanding balance that is
           equal to not more than twice the percentage required before
           the effective date of the increase set forth in the notice
           required under section 127(i).
     ‘‘(d) OUTSTANDING BALANCE DEFINED.—For purposes of this
section, the term ‘outstanding balance’ means the amount owed
on a credit card account under an open end consumer credit plan
as of the end of the 14th day after the date on which the creditor
provides notice of an increase in the annual percentage rate, fee,
or finance charge in accordance with section 127(i).’’.
     (c) INTEREST RATE REDUCTION ON OPEN END CONSUMER CREDIT
PLANS.—Chapter 3 of the Truth in Lending Act (15 U.S.C. 1661
et seq.) is amended by adding at the end the following:
‘‘SEC. 148. INTEREST RATE REDUCTION ON OPEN END CONSUMER
            CREDIT PLANS.
    ‘‘(a) IN GENERAL.—If a creditor increases the annual percentage
rate applicable to a credit card account under an open end consumer
credit plan, based on factors including the credit risk of the obligor,
market conditions, or other factors, the creditor shall consider
changes in such factors in subsequently determining whether to
reduce the annual percentage rate for such obligor.
    ‘‘(b) REQUIREMENTS.—With respect to any credit card account
under an open end consumer credit plan, the creditor shall—
          ‘‘(1) maintain reasonable methodologies for assessing the
    factors described in subsection (a);
          ‘‘(2) not less frequently than once every 6 months, review
    accounts as to which the annual percentage rate has been
    increased since January 1, 2009, to assess whether such factors
    have changed (including whether any risk has declined);
                                  H. R. 627—5

           ‘‘(3) reduce the annual percentage rate previously increased
     when a reduction is indicated by the review; and
           ‘‘(4) in the event of an increase in the annual percentage
     rate, provide in the written notice required under section 127(i)
     a statement of the reasons for the increase.
     ‘‘(c) RULE OF CONSTRUCTION.—This section shall not be con-
strued to require a reduction in any specific amount.
     ‘‘(d) RULEMAKING.—The Board shall issue final rules not later
than 9 months after the date of enactment of this section to imple-
ment the requirements of and evaluate compliance with this section,
and subsections (a), (b), and (c) shall become effective 15 months
after that date of enactment.’’.
     (d) INTRODUCTORY AND PROMOTIONAL RATES.—Chapter 4 of
the Truth in Lending Act (15 U.S.C. 1666 et seq.) is amended
by inserting after section 171, as amended by this Act, the following:
‘‘SEC. 172. ADDITIONAL LIMITS ON INTEREST RATE INCREASES.
     ‘‘(a) LIMITATION ON INCREASES WITHIN FIRST YEAR.—Except
in the case of an increase described in paragraph (1), (2), (3),
or (4) of section 171(b), no increase in any annual percentage
rate, fee, or finance charge on any credit card account under an
open end consumer credit plan shall be effective before the end
of the 1-year period beginning on the date on which the account
is opened.
     ‘‘(b) PROMOTIONAL RATE MINIMUM TERM.—No increase in any
annual percentage rate applicable to a credit card account under
an open end consumer credit plan that is a promotional rate (as
that term is defined by the Board) shall be effective before the
end of the 6-month period beginning on the date on which the
promotional rate takes effect, subject to such reasonable exceptions
as the Board may establish, by rule.’’.
     (e) CLERICAL AMENDMENT.—The table of sections for chapter
4 of the Truth in Lending Act is amended by striking the item
relating to section 171 and inserting the following:
‘‘171. Limits on interest rate, fee, and finance charge increases applicable to out-
             standing balances.
‘‘172. Additional limits on interest rate increases.
‘‘173. Applicability of State laws.’’.
SEC. 102. LIMITS ON FEES AND INTEREST CHARGES.
    (a) IN GENERAL.—Section 127 of the Truth in Lending Act
(15 U.S.C. 1637) is amended by adding at the end the following:
    ‘‘(j) PROHIBITION ON PENALTIES FOR ON-TIME PAYMENTS.—
           ‘‘(1) PROHIBITION ON DOUBLE-CYCLE BILLING AND PENALTIES
    FOR ON-TIME PAYMENTS.—Except as provided in paragraph (2),
    a creditor may not impose any finance charge on a credit
    card account under an open end consumer credit plan as a
    result of the loss of any time period provided by the creditor
    within which the obligor may repay any portion of the credit
    extended without incurring a finance charge, with respect to—
                 ‘‘(A) any balances for days in billing cycles that precede
           the most recent billing cycle; or
                 ‘‘(B) any balances or portions thereof in the current
           billing cycle that were repaid within such time period.
           ‘‘(2) EXCEPTIONS.—Paragraph (1) does not apply to—
                 ‘‘(A) any adjustment to a finance charge as a result
           of the resolution of a dispute; or
                             H. R. 627—6

               ‘‘(B) any adjustment to a finance charge as a result
         of the return of a payment for insufficient funds.
   ‘‘(k) OPT-IN REQUIRED FOR OVER-THE-LIMIT TRANSACTIONS IF
FEES ARE IMPOSED.—
         ‘‘(1) IN GENERAL.—In the case of any credit card account
   under an open end consumer credit plan under which an over-
   the-limit fee may be imposed by the creditor for any extension
   of credit in excess of the amount of credit authorized to be
   extended under such account, no such fee shall be charged,
   unless the consumer has expressly elected to permit the cred-
   itor, with respect to such account, to complete transactions
   involving the extension of credit under such account in excess
   of the amount of credit authorized.
         ‘‘(2) DISCLOSURE BY CREDITOR.—No election by a consumer
   under paragraph (1) shall take effect unless the consumer,
   before making such election, received a notice from the creditor
   of any over-the-limit fee in the form and manner, and at the
   time, determined by the Board. If the consumer makes the
   election referred to in paragraph (1), the creditor shall provide
   notice to the consumer of the right to revoke the election,
   in the form prescribed by the Board, in any periodic statement
   that includes notice of the imposition of an over-the-limit fee
   during the period covered by the statement.
         ‘‘(3) FORM OF ELECTION.—A consumer may make or revoke
   the election referred to in paragraph (1) orally, electronically,
   or in writing, pursuant to regulations prescribed by the Board.
   The Board shall prescribe regulations to ensure that the same
   options are available for both making and revoking such elec-
   tion.
         ‘‘(4) TIME OF ELECTION.—A consumer may make the election
   referred to in paragraph (1) at any time, and such election
   shall be effective until the election is revoked in the manner
   prescribed under paragraph (3).
         ‘‘(5) REGULATIONS.—The Board shall prescribe regula-
   tions—
               ‘‘(A) governing disclosures under this subsection; and
               ‘‘(B) that prevent unfair or deceptive acts or practices
         in connection with the manipulation of credit limits
         designed to increase over-the-limit fees or other penalty
         fees.
         ‘‘(6) RULE OF CONSTRUCTION.—Nothing in this subsection
   shall be construed to prohibit a creditor from completing an
   over-the-limit transaction, provided that a consumer who has
   not made a valid election under paragraph (1) is not charged
   an over-the-limit fee for such transaction.
         ‘‘(7) RESTRICTION ON FEES CHARGED FOR AN OVER-THE-LIMIT
   TRANSACTION.—With respect to a credit card account under
   an open end consumer credit plan, an over-the-limit fee may
   be imposed only once during a billing cycle if the credit limit
   on the account is exceeded, and an over-the-limit fee, with
   respect to such excess credit, may be imposed only once in
   each of the 2 subsequent billing cycles, unless the consumer
   has obtained an additional extension of credit in excess of
   such credit limit during any such subsequent cycle or the
   consumer reduces the outstanding balance below the credit
   limit as of the end of such billing cycle.
                            H. R. 627—7

    ‘‘(l) LIMIT ON FEES RELATED TO METHOD OF PAYMENT.—With
respect to a credit card account under an open end consumer
credit plan, the creditor may not impose a separate fee to allow
the obligor to repay an extension of credit or finance charge, whether
such repayment is made by mail, electronic transfer, telephone
authorization, or other means, unless such payment involves an
expedited service by a service representative of the creditor.’’.
    (b) REASONABLE PENALTY FEES.—
          (1) IN GENERAL.—Chapter 3 of the Truth in Lending Act
    (15 U.S.C. 1661 et seq.), as amended by this Act, is amended
    by adding at the end the following:
‘‘SEC. 149. REASONABLE PENALTY FEES ON OPEN END CONSUMER
            CREDIT PLANS.
     ‘‘(a) IN GENERAL.—The amount of any penalty fee or charge
that a card issuer may impose with respect to a credit card account
under an open end consumer credit plan in connection with any
omission with respect to, or violation of, the cardholder agreement,
including any late payment fee, over-the-limit fee, or any other
penalty fee or charge, shall be reasonable and proportional to such
omission or violation.
     ‘‘(b) RULEMAKING REQUIRED.—The Board, in consultation with
the Comptroller of the Currency, the Board of Directors of the
Federal Deposit Insurance Corporation, the Director of the Office
of Thrift Supervision, and the National Credit Union Administration
Board, shall issue final rules not later than 9 months after the
date of enactment of this section, to establish standards for
assessing whether the amount of any penalty fee or charge described
under subsection (a) is reasonable and proportional to the omission
or violation to which the fee or charge relates. Subsection (a) shall
become effective 15 months after the date of enactment of this
section.
     ‘‘(c) CONSIDERATIONS.—In issuing rules required by this section,
the Board shall consider—
           ‘‘(1) the cost incurred by the creditor from such omission
     or violation;
           ‘‘(2) the deterrence of such omission or violation by the
     cardholder;
           ‘‘(3) the conduct of the cardholder; and
           ‘‘(4) such other factors as the Board may deem necessary
     or appropriate.
     ‘‘(d) DIFFERENTIATION PERMITTED.—In issuing rules required
by this subsection, the Board may establish different standards
for different types of fees and charges, as appropriate.
     ‘‘(e) SAFE HARBOR RULE AUTHORIZED.—The Board, in consulta-
tion with the Comptroller of the Currency, the Board of Directors
of the Federal Deposit Insurance Corporation, the Director of the
Office of Thrift Supervision, and the National Credit Union
Administration Board, may issue rules to provide an amount for
any penalty fee or charge described under subsection (a) that is
presumed to be reasonable and proportional to the omission or
violation to which the fee or charge relates.’’.
           (2) CLERICAL AMENDMENTS.—Chapter 3 of the Truth in
     Lending Act (15 U.S.C. 1661 et seq.) is amended—
                 (A) in the chapter heading, by inserting ‘‘AND LIMITS
           ON CREDIT CARD FEES’’ after ‘‘ADVERTISING’’; and
                                   H. R. 627—8

               (B) in the table of sections for the chapter, by adding
          at the end the following:
‘‘148. Interest rate reduction on open end consumer credit plans.
‘‘149. Reasonable penalty fees on open end consumer credit plans.’’.
SEC. 103. USE OF TERMS CLARIFIED.
    Section 127 of the Truth in Lending Act (15 U.S.C. 1637)
is amended by adding at the end the following:
    ‘‘(m) USE OF TERM ‘FIXED RATE’.—With respect to the terms
of any credit card account under an open end consumer credit
plan, the term ‘fixed’, when appearing in conjunction with a ref-
erence to the annual percentage rate or interest rate applicable
with respect to such account, may only be used to refer to an
annual percentage rate or interest rate that will not change or
vary for any reason over the period specified clearly and conspicu-
ously in the terms of the account.’’.
SEC. 104. APPLICATION OF CARD PAYMENTS.
    Section 164 of the Truth in Lending Act (15 U.S.C. 1666c)
is amended—
        (1) by striking the section heading and all that follows
    through ‘‘Payments’’ and inserting the following:
‘‘§ 164. Prompt and fair crediting of payments
     ‘‘(a) IN GENERAL.—Payments’’;
           (2) by inserting ‘‘, by 5:00 p.m. on the date on which
     such payment is due,’’ after ‘‘in readily identifiable form’’;
           (3) by striking ‘‘manner, location, and time’’ and inserting
     ‘‘manner, and location’’; and
           (4) by adding at the end the following:
     ‘‘(b) APPLICATION OF PAYMENTS.—
           ‘‘(1) IN GENERAL.—Upon receipt of a payment from a card-
     holder, the card issuer shall apply amounts in excess of the
     minimum payment amount first to the card balance bearing
     the highest rate of interest, and then to each successive balance
     bearing the next highest rate of interest, until the payment
     is exhausted.
           ‘‘(2) CLARIFICATION RELATING TO CERTAIN DEFERRED
     INTEREST ARRANGEMENTS.—A creditor shall allocate the entire
     amount paid by the consumer in excess of the minimum pay-
     ment amount to a balance on which interest is deferred during
     the last 2 billing cycles immediately preceding the expiration
     of the period during which interest is deferred.
     ‘‘(c) CHANGES BY CARD ISSUER.—If a card issuer makes a mate-
rial change in the mailing address, office, or procedures for handling
cardholder payments, and such change causes a material delay
in the crediting of a cardholder payment made during the 60-
day period following the date on which such change took effect,
the card issuer may not impose any late fee or finance charge
for a late payment on the credit card account to which such payment
was credited.’’.
SEC.   105.   STANDARDS APPLICABLE TO INITIAL                      ISSUANCE   OF
              SUBPRIME OR ‘‘FEE HARVESTER’’ CARDS.
     Section 127 of the Truth in Lending Act (15 U.S.C. 1637),
as amended by this Act, is amended by adding at the end the
following new subsection:
                             H. R. 627—9

      ‘‘(n) STANDARDS APPLICABLE TO INITIAL ISSUANCE OF SUBPRIME
OR   ‘FEE HARVESTER’ CARDS.—
            ‘‘(1) IN GENERAL.—If the terms of a credit card account
      under an open end consumer credit plan require the payment
      of any fees (other than any late fee, over-the-limit fee, or
      fee for a payment returned for insufficient funds) by the con-
      sumer in the first year during which the account is opened
      in an aggregate amount in excess of 25 percent of the total
      amount of credit authorized under the account when the
      account is opened, no payment of any fees (other than any
      late fee, over-the-limit fee, or fee for a payment returned for
      insufficient funds) may be made from the credit made available
      under the terms of the account.
            ‘‘(2) RULE OF CONSTRUCTION.—No provision of this sub-
      section may be construed as authorizing any imposition or
      payment of advance fees otherwise prohibited by any provision
      of law.’’.
SEC. 106. RULES REGARDING PERIODIC STATEMENTS.
    (a) IN GENERAL.—Section 127 of the Truth in Lending Act
(15 U.S.C. 1637) is amended by adding at the end the following:
    ‘‘(o) DUE DATES FOR CREDIT CARD ACCOUNTS.—
          ‘‘(1) IN GENERAL.—The payment due date for a credit card
    account under an open end consumer credit plan shall be the
    same day each month.
          ‘‘(2) WEEKEND OR HOLIDAY DUE DATES.—If the payment
    due date for a credit card account under an open end consumer
    credit plan is a day on which the creditor does not receive
    or accept payments by mail (including weekends and holidays),
    the creditor may not treat a payment received on the next
    business day as late for any purpose.’’.
    (b) LENGTH OF BILLING PERIOD.—
          (1) IN GENERAL.—Section 163 of the Truth in Lending
    Act (15 U.S.C. 1666b) is amended to read as follows:
‘‘SEC. 163. TIMING OF PAYMENTS.
     ‘‘(a) TIME TO MAKE PAYMENTS.—A creditor may not treat a
payment on an open end consumer credit plan as late for any
purpose, unless the creditor has adopted reasonable procedures
designed to ensure that each periodic statement including the
information required by section 127(b) is mailed or delivered to
the consumer not later than 21 days before the payment due date.
     ‘‘(b) GRACE PERIOD.—If an open end consumer credit plan pro-
vides a time period within which an obligor may repay any portion
of the credit extended without incurring an additional finance
charge, such additional finance charge may not be imposed with
respect to such portion of the credit extended for the billing cycle
of which such period is a part, unless a statement which includes
the amount upon which the finance charge for the period is based
was mailed or delivered to the consumer not later than 21 days
before the date specified in the statement by which payment must
be made in order to avoid imposition of that finance charge.’’.
           (2) EFFECTIVE DATE.—Notwithstanding section 3, section
     163 of the Truth in Lending Act, as amended by this subsection,
     shall become effective 90 days after the date of enactment
     of this Act.
     (c) CLERICAL AMENDMENTS.—The table of sections for chapter
4 of the Truth in Lending Act is amended—
                                     H. R. 627—10

          (1) by striking the item relating to section 163 and inserting
     the following:
‘‘163. Timing of payments.’’; and
          (2) by striking the item relating to section 171 and inserting
     the following:
‘‘171. Universal defaults prohibited.
‘‘172. Unilateral changes in credit card agreement prohibited.
‘‘173. Applicability of State laws.’’.
SEC. 107. ENHANCED PENALTIES.
     Section 130(a)(2)(A) of the Truth in Lending Act (15 U.S.C.
1640(a)(2)(A)) is amended by striking ‘‘or (iii) in the’’ and inserting
the following: ‘‘(iii) in the case of an individual action relating
to an open end consumer credit plan that is not secured by real
property or a dwelling, twice the amount of any finance charge
in connection with the transaction, with a minimum of $500 and
a maximum of $5,000, or such higher amount as may be appropriate
in the case of an established pattern or practice of such failures;
or (iv) in the’’.
SEC. 108. CLERICAL AMENDMENTS.
    Section 103(i) of the Truth in Lending Act (15 U.S.C. 1602(i))
is amended—
        (1) by striking ‘‘term’’ and all that follows through ‘‘means’’
    and inserting the following: ‘‘terms ‘open end credit plan’ and
    ‘open end consumer credit plan’ mean’’; and
        (2) in the second sentence, by inserting ‘‘or open end con-
    sumer credit plan’’ after ‘‘credit plan’’ each place that term
    appears.
SEC. 109. CONSIDERATION OF ABILITY TO REPAY.
    (a) IN GENERAL.—Chapter 3 of the Truth in Lending Act (15
U.S.C. 1666 et seq.), as amended by this title, is amended by
adding at the end the following:
‘‘SEC. 150. CONSIDERATION OF ABILITY TO REPAY.
     ‘‘A card issuer may not open any credit card account for any
consumer under an open end consumer credit plan, or increase
any credit limit applicable to such account, unless the card issuer
considers the ability of the consumer to make the required payments
under the terms of such account.’’.
     (b) CLERICAL AMENDMENT.—Chapter 3 of the Truth in Lending
Act (15 U.S.C. 1661 et seq.) is amended in the table of sections
for the chapter, by adding at the end the following:
‘‘150. Consideration of ability to repay.’’.

       TITLE II—ENHANCED CONSUMER
                DISCLOSURES
SEC. 201. PAYOFF TIMING DISCLOSURES.
     (a) IN GENERAL.—Section 127(b)(11) of the Truth in Lending
Act (15 U.S.C. 1637(b)(11)) is amended to read as follows:
          ‘‘(11)(A) A written statement in the following form: ‘Min-
     imum Payment Warning: Making only the minimum payment
     will increase the amount of interest you pay and the time
                        H. R. 627—11

it takes to repay your balance.’, or such similar statement
as is established by the Board pursuant to consumer testing.
     ‘‘(B) Repayment information that would apply to the out-
standing balance of the consumer under the credit plan,
including—
            ‘‘(i) the number of months (rounded to the nearest
     month) that it would take to pay the entire amount of
     that balance, if the consumer pays only the required min-
     imum monthly payments and if no further advances are
     made;
            ‘‘(ii) the total cost to the consumer, including interest
     and principal payments, of paying that balance in full,
     if the consumer pays only the required minimum monthly
     payments and if no further advances are made;
            ‘‘(iii) the monthly payment amount that would be
     required for the consumer to eliminate the outstanding
     balance in 36 months, if no further advances are made,
     and the total cost to the consumer, including interest and
     principal payments, of paying that balance in full if the
     consumer pays the balance over 36 months; and
            ‘‘(iv) a toll-free telephone number at which the con-
     sumer may receive information about accessing credit coun-
     seling and debt management services.
     ‘‘(C)(i) Subject to clause (ii), in making the disclosures
under subparagraph (B), the creditor shall apply the interest
rate or rates in effect on the date on which the disclosure
is made until the date on which the balance would be paid
in full.
     ‘‘(ii) If the interest rate in effect on the date on which
the disclosure is made is a temporary rate that will change
under a contractual provision applying an index or formula
for subsequent interest rate adjustment, the creditor shall apply
the interest rate in effect on the date on which the disclosure
is made for as long as that interest rate will apply under
that contractual provision, and then apply an interest rate
based on the index or formula in effect on the applicable billing
date.
     ‘‘(D) All of the information described in subparagraph (B)
shall—
            ‘‘(i) be disclosed in the form and manner which the
     Board shall prescribe, by regulation, and in a manner
     that avoids duplication; and
            ‘‘(ii) be placed in a conspicuous and prominent location
     on the billing statement.
     ‘‘(E) In the regulations prescribed under subparagraph (D),
the Board shall require that the disclosure of such information
shall be in the form of a table that—
            ‘‘(i) contains clear and concise headings for each item
     of such information; and
            ‘‘(ii) provides a clear and concise form stating each
     item of information required to be disclosed under each
     such heading.
     ‘‘(F) In prescribing the form of the table under subpara-
graph (E), the Board shall require that—
            ‘‘(i) all of the information in the table, and not just
     a reference to the table, be placed on the billing statement,
     as required by this paragraph; and
                            H. R. 627—12

               ‘‘(ii) the items required to be included in the table
          shall be listed in the order in which such items are set
          forth in subparagraph (B).
          ‘‘(G) In prescribing the form of the table under subpara-
     graph (D), the Board shall employ terminology which is dif-
     ferent than the terminology which is employed in subparagraph
     (B), if such terminology is more easily understood and conveys
     substantially the same meaning.’’.
     (b) CIVIL LIABILITY.—Section 130(a) of the Truth in Lending
Act (15 U.S.C. 1640(a)) is amended, in the undesignated paragraph
following paragraph (4), by striking the second sentence and
inserting the following: ‘‘In connection with the disclosures referred
to in subsections (a) and (b) of section 127, a creditor shall have
a liability determined under paragraph (2) only for failing to comply
with the requirements of section 125, 127(a), or any of paragraphs
(4) through (13) of section 127(b), or for failing to comply with
disclosure requirements under State law for any term or item
that the Board has determined to be substantially the same in
meaning under section 111(a)(2) as any of the terms or items
referred to in section 127(a), or any of paragraphs (4) through
(13) of section 127(b).’’.
     (c) GUIDELINES REQUIRED.—
          (1) IN GENERAL.—Not later than 6 months after the date
     of enactment of this Act, the Board shall issue guidelines,
     by rule, in consultation with the Secretary of the Treasury,
     for the establishment and maintenance by creditors of a toll-
     free telephone number for purposes of providing information
     about accessing credit counseling and debt management serv-
     ices, as required under section 127(b)(11)(B)(iv) of the Truth
     in Lending Act, as added by this section.
          (2) APPROVED AGENCIES.—Guidelines issued under this sub-
     section shall ensure that referrals provided by the toll-free
     number referred to in paragraph (1) include only those nonprofit
     budget and credit counseling agencies approved by a United
     States bankruptcy trustee pursuant to section 111(a) of title
     11, United States Code.
SEC. 202. REQUIREMENTS RELATING TO LATE PAYMENT DEADLINES
           AND PENALTIES.
    Section 127(b)(12) of the Truth in Lending Act (15 U.S.C.
1637(b)(12)) is amended to read as follows:
        ‘‘(12) REQUIREMENTS RELATING TO LATE PAYMENT DEAD-
    LINES AND PENALTIES.—
              ‘‘(A) LATE PAYMENT DEADLINE REQUIRED TO BE DIS-
        CLOSED.—In the case of a credit card account under an
        open end consumer credit plan under which a late fee
        or charge may be imposed due to the failure of the obligor
        to make payment on or before the due date for such pay-
        ment, the periodic statement required under subsection
        (b) with respect to the account shall include, in a con-
        spicuous location on the billing statement, the date on
        which the payment is due or, if different, the date on
        which a late payment fee will be charged, together with
        the amount of the fee or charge to be imposed if payment
        is made after that date.
              ‘‘(B) DISCLOSURE OF INCREASE IN INTEREST RATES FOR
        LATE PAYMENTS.—If 1 or more late payments under an
                            H. R. 627—13

        open end consumer credit plan may result in an increase
        in the annual percentage rate applicable to the account,
        the statement required under subsection (b) with respect
        to the account shall include conspicuous notice of such
        fact, together with the applicable penalty annual percent-
        age rate, in close proximity to the disclosure required under
        subparagraph (A) of the date on which payment is due
        under the terms of the account.
             ‘‘(C) PAYMENTS AT LOCAL BRANCHES.—If the creditor,
        in the case of a credit card account referred to in subpara-
        graph (A), is a financial institution which maintains
        branches or offices at which payments on any such account
        are accepted from the obligor in person, the date on which
        the obligor makes a payment on the account at such branch
        or office shall be considered to be the date on which the
        payment is made for purposes of determining whether a
        late fee or charge may be imposed due to the failure of
        the obligor to make payment on or before the due date
        for such payment.’’.
SEC. 203. RENEWAL DISCLOSURES.
    Section 127(d) of the Truth in Lending Act (15 U.S.C. 1637(d))
is amended—
         (1) by striking paragraph (2);
         (2) by redesignating paragraph (3) as paragraph (2); and
         (3) in paragraph (1), by striking ‘‘Except as provided in
    paragraph (2), a card issuer’’ and inserting the following: ‘‘A
    card issuer that has changed or amended any term of the
    account since the last renewal that has not been previously
    disclosed or’’.
SEC. 204. INTERNET POSTING OF CREDIT CARD AGREEMENTS.
    (a) IN GENERAL.—Section 122 of the Truth and Lending Act
(15 U.S.C. 1632) is amended by adding at the end the following
new subsection:
    ‘‘(d) ADDITIONAL ELECTRONIC DISCLOSURES.—
          ‘‘(1) POSTING AGREEMENTS.—Each creditor shall establish
    and maintain an Internet site on which the creditor shall
    post the written agreement between the creditor and the con-
    sumer for each credit card account under an open-end consumer
    credit plan.
          ‘‘(2) CREDITOR TO PROVIDE CONTRACTS TO THE BOARD.—
    Each creditor shall provide to the Board, in electronic format,
    the consumer credit card agreements that it publishes on its
    Internet site.
          ‘‘(3) RECORD REPOSITORY.—The Board shall establish and
    maintain on its publicly available Internet site a central reposi-
    tory of the consumer credit card agreements received from
    creditors pursuant to this subsection, and such agreements
    shall be easily accessible and retrievable by the public.
          ‘‘(4) EXCEPTION.—This subsection shall not apply to individ-
    ually negotiated changes to contractual terms, such as individ-
    ually modified workouts or renegotiations of amounts owed
    by a consumer under an open end consumer credit plan.
          ‘‘(5) REGULATIONS.—The Board, in consultation with the
    other Federal banking agencies (as that term is defined in
                            H. R. 627—14

    section 603) and the Federal Trade Commission, may promul-
    gate regulations to implement this subsection, including speci-
    fying the format for posting the agreements on the Internet
    sites of creditors and establishing exceptions to paragraphs
    (1) and (2), in any case in which the administrative burden
    outweighs the benefit of increased transparency, such as where
    a credit card plan has a de minimis number of consumer
    account holders.’’.
SEC. 205. PREVENTION OF DECEPTIVE MARKETING OF CREDIT
          REPORTS.
     (a) PREVENTING DECEPTIVE MARKETING.—Section 612 of the
Fair Credit Reporting Act (15 U.S.C. 1681j) is amended by adding
at the end the following:
     ‘‘(g) PREVENTION OF DECEPTIVE MARKETING OF CREDIT
REPORTS.—
          ‘‘(1) IN GENERAL.—Subject to rulemaking pursuant to sec-
     tion 205(b) of the Credit CARD Act of 2009, any advertisement
     for a free credit report in any medium shall prominently disclose
     in such advertisement that free credit reports are available
     under Federal law at: ‘AnnualCreditReport.com’ (or such other
     source as may be authorized under Federal law).
          ‘‘(2) TELEVISION AND RADIO ADVERTISEMENT.—In the case
     of an advertisement broadcast by television, the disclosures
     required under paragraph (1) shall be included in the audio
     and visual part of such advertisement. In the case of an
     advertisement broadcast by televison or radio, the disclosure
     required under paragraph (1) shall consist only of the following:
     ‘This is not the free credit report provided for by Federal
     law’.’’.
     (b) RULEMAKING.—
          (1) IN GENERAL.—Not later than 9 months after the date
     of enactment of this Act, the Federal Trade Commission shall
     issue a final rule to carry out this section.
          (2) CONTENT.—The rule required by this subsection—
                (A) shall include specific wording to be used in
          advertisements in accordance with this section; and
                (B) for advertisements on the Internet, shall include
          whether the disclosure required under section 612(g)(1)
          of the Fair Credit Reporting Act (as added by this section)
          shall appear on the advertisement or the website on which
          the free credit report is made available.
          (3) INTERIM DISCLOSURES.—If an advertisement subject to
     section 612(g) of the Fair Credit Reporting Act, as added by
     this section, is made public after the 9-month deadline specified
     in paragraph (1), but before the rule required by paragraph
     (1) is finalized, such advertisement shall include the disclosure:
     ‘‘Free credit reports are available under Federal law at:
     ‘AnnualCreditReport.com’.’’.

    TITLE III—PROTECTION OF YOUNG
              CONSUMERS
SEC. 301. EXTENSIONS OF CREDIT TO UNDERAGE CONSUMERS.
    Section 127(c) of the Truth in Lending Act (15 U.S.C. 1637(c))
is amended by adding at the end the following:
                           H. R. 627—15

        ‘‘(8) APPLICATIONS FROM UNDERAGE CONSUMERS.—
              ‘‘(A) PROHIBITION ON ISSUANCE.—No credit card may
        be issued to, or open end consumer credit plan established
        by or on behalf of, a consumer who has not attained the
        age of 21, unless the consumer has submitted a written
        application to the card issuer that meets the requirements
        of subparagraph (B).
              ‘‘(B) APPLICATION REQUIREMENTS.—An application to
        open a credit card account by a consumer who has not
        attained the age of 21 as of the date of submission of
        the application shall require—
                    ‘‘(i) the signature of a cosigner, including the
              parent, legal guardian, spouse, or any other individual
              who has attained the age of 21 having a means to
              repay debts incurred by the consumer in connection
              with the account, indicating joint liability for debts
              incurred by the consumer in connection with the
              account before the consumer has attained the age of
              21; or
                    ‘‘(ii) submission by the consumer of financial
              information, including through an application, indi-
              cating an independent means of repaying any obliga-
              tion arising from the proposed extension of credit in
              connection with the account.
              ‘‘(C) SAFE HARBOR.—The Board shall promulgate regu-
        lations providing standards that, if met, would satisfy the
        requirements of subparagraph (B)(ii).’’.
SEC. 302. PROTECTION OF YOUNG CONSUMERS FROM PRESCREENED
           CREDIT OFFERS.
    Section 604(c)(1)(B) of the Fair Credit Reporting Act (15 U.S.C.
1681b(c)(1)(B)) is amended—
        (1) in clause (ii), by striking ‘‘and’’ at the end; and
        (2) in clause (iii), by striking the period at the end and
    inserting the following: ‘‘; and
             ‘‘(iv) the consumer report does not contain a date of
        birth that shows that the consumer has not attained the
        age of 21, or, if the date of birth on the consumer report
        shows that the consumer has not attained the age of 21,
        such consumer consents to the consumer reporting agency
        to such furnishing.’’.
SEC. 303. ISSUANCE OF CREDIT CARDS TO CERTAIN COLLEGE STU-
            DENTS.
     Section 127 of the Truth in Lending Act (15 U.S.C. 1637)
is amended by adding at the end the following new subsection:
     ‘‘(p) PARENTAL APPROVAL REQUIRED TO INCREASE CREDIT LINES
FOR ACCOUNTS FOR WHICH PARENT IS JOINTLY LIABLE.—No increase
may be made in the amount of credit authorized to be extended
under a credit card account for which a parent, legal guardian,
or spouse of the consumer, or any other individual has assumed
joint liability for debts incurred by the consumer in connection
with the account before the consumer attains the age of 21, unless
that parent, guardian, or spouse approves in writing, and assumes
joint liability for, such increase.’’.
                            H. R. 627—16
SEC. 304. PRIVACY PROTECTIONS FOR COLLEGE STUDENTS.
    Section 140 of the Truth in Lending Act (15 U.S.C. 1650)
is amended by adding at the end the following:
    ‘‘(f) CREDIT CARD PROTECTIONS FOR COLLEGE STUDENTS.—
          ‘‘(1) DISCLOSURE REQUIRED.—An institution of higher edu-
    cation shall publicly disclose any contract or other agreement
    made with a card issuer or creditor for the purpose of marketing
    a credit card.
          ‘‘(2) INDUCEMENTS PROHIBITED.—No card issuer or creditor
    may offer to a student at an institution of higher education
    any tangible item to induce such student to apply for or partici-
    pate in an open end consumer credit plan offered by such
    card issuer or creditor, if such offer is made—
                ‘‘(A) on the campus of an institution of higher edu-
          cation;
                ‘‘(B) near the campus of an institution of higher edu-
          cation, as determined by rule of the Board; or
                ‘‘(C) at an event sponsored by or related to an institu-
          tion of higher education.
          ‘‘(3) SENSE OF THE CONGRESS.—It is the sense of the Con-
    gress that each institution of higher education should consider
    adopting the following policies relating to credit cards:
                ‘‘(A) That any card issuer that markets a credit card
          on the campus of such institution notify the institution
          of the location at which such marketing will take place.
                ‘‘(B) That the number of locations on the campus of
          such institution at which the marketing of credit cards
          takes place be limited.
                ‘‘(C) That credit card and debt education and counseling
          sessions be offered as a regular part of any orientation
          program for new students of such institution.’’.
SEC. 305. COLLEGE CREDIT CARD AGREEMENTS.
    (a) IN GENERAL.—Section 127 of the Truth in Lending Act
(15 U.S.C. 1637), as otherwise amended by this Act, is amended
by adding at the end the following:
    ‘‘(r) COLLEGE CARD AGREEMENTS.—
          ‘‘(1) DEFINITIONS.—For purposes of this subsection, the fol-
    lowing definitions shall apply:
                ‘‘(A) COLLEGE AFFINITY CARD.—The term ‘college
          affinity card’ means a credit card issued by a credit card
          issuer under an open end consumer credit plan in conjunc-
          tion with an agreement between the issuer and an institu-
          tion of higher education, or an alumni organization or
          foundation affiliated with or related to such institution,
          under which such cards are issued to college students
          who have an affinity with such institution, organization
          and—
                     ‘‘(i) the creditor has agreed to donate a portion
                of the proceeds of the credit card to the institution,
                organization, or foundation (including a lump sum or
                1-time payment of money for access);
                     ‘‘(ii) the creditor has agreed to offer discounted
                terms to the consumer; or
                     ‘‘(iii) the credit card bears the name, emblem,
                mascot, or logo of such institution, organization, or
                foundation, or other words, pictures, or symbols readily
                        H. R. 627—17

           identified with such institution, organization, or
           foundation.
           ‘‘(B) COLLEGE STUDENT CREDIT CARD ACCOUNT.—The
     term ‘college student credit card account’ means a credit
     card account under an open end consumer credit plan
     established or maintained for or on behalf of any college
     student.
           ‘‘(C) COLLEGE STUDENT.—The term ‘college student’
     means an individual who is a full-time or a part-time
     student attending an institution of higher education.
           ‘‘(D) INSTITUTION OF HIGHER EDUCATION.—The term
     ‘institution of higher education’ has the same meaning
     as in section 101 and 102 of the Higher Education Act
     of 1965 (20 U.S.C. 1001 and 1002).
     ‘‘(2) REPORTS BY CREDITORS.—
           ‘‘(A) IN GENERAL.—Each creditor shall submit an
     annual report to the Board containing the terms and condi-
     tions of all business, marketing, and promotional agree-
     ments and college affinity card agreements with an institu-
     tion of higher education, or an alumni organization or
     foundation affiliated with or related to such institution,
     with respect to any college student credit card issued to
     a college student at such institution.
           ‘‘(B) DETAILS OF REPORT.—The information required
     to be reported under subparagraph (A) includes—
                 ‘‘(i) any memorandum of understanding between
           or among a creditor, an institution of higher education,
           an alumni association, or foundation that directly or
           indirectly relates to any aspect of any agreement
           referred to in such subparagraph or controls or directs
           any obligations or distribution of benefits between or
           among any such entities;
                 ‘‘(ii) the amount of any payments from the creditor
           to the institution, organization, or foundation during
           the period covered by the report, and the precise terms
           of any agreement under which such amounts are deter-
           mined; and
                 ‘‘(iii) the number of credit card accounts covered
           by any such agreement that were opened during the
           period covered by the report, and the total number
           of credit card accounts covered by the agreement that
           were outstanding at the end of such period.
           ‘‘(C) AGGREGATION BY INSTITUTION.—The information
     required to be reported under subparagraph (A) shall be
     aggregated with respect to each institution of higher edu-
     cation or alumni organization or foundation affiliated with
     or related to such institution.
           ‘‘(D) INITIAL REPORT.—The initial report required under
     subparagraph (A) shall be submitted to the Board before
     the end of the 9-month period beginning on the date of
     enactment of this subsection.
     ‘‘(3) REPORTS BY BOARD.—The Board shall submit to the
Congress, and make available to the public, an annual report
that lists the information concerning credit card agreements
submitted to the Board under paragraph (2) by each institution
of higher education, alumni organization, or foundation.’’.
(b) STUDY AND REPORT BY THE COMPTROLLER GENERAL.—
                             H. R. 627—18

         (1) STUDY.—The Comptroller General of the United States
    shall, from time to time, review the reports submitted by credi-
    tors under section 127(r) of the Truth in Lending Act, as added
    by this section, and the marketing practices of creditors to
    determine the impact that college affinity card agreements
    and college student card agreements have on credit card debt.
         (2) REPORT.—Upon completion of any study under para-
    graph (1), the Comptroller General shall periodically submit
    a report to the Congress on the findings and conclusions of
    the study, together with such recommendations for administra-
    tive or legislative action as the Comptroller General determines
    to be appropriate.

               TITLE IV—GIFT CARDS
SEC. 401. GENERAL-USE PREPAID CARDS, GIFT CERTIFICATES, AND
           STORE GIFT CARDS.
    The Electronic Fund Transfer Act (15 U.S.C. 1693 et seq.)
is amended—
        (1) by redesignating sections 915 through 921 as sections
    916 through 922, respectively; and
        (2) by inserting after section 914 the following:
‘‘SEC. 915. GENERAL-USE PREPAID CARDS, GIFT CERTIFICATES, AND
             STORE GIFT CARDS.
    ‘‘(a) DEFINITIONS.—In this section, the following definitions
shall apply:
          ‘‘(1) DORMANCY FEE; INACTIVITY CHARGE OR FEE.—The
    terms ‘dormancy fee’ and ‘inactivity charge or fee’ mean a
    fee, charge, or penalty for non-use or inactivity of a gift certifi-
    cate, store gift card, or general-use prepaid card.
          ‘‘(2) GENERAL USE PREPAID CARD, GIFT CERTIFICATE, AND
    STORE GIFT CARD.—
                ‘‘(A) GENERAL-USE PREPAID CARD.—The term ‘general-
          use prepaid card’ means a card or other payment code
          or device issued by any person that is—
                     ‘‘(i) redeemable at multiple, unaffiliated merchants
                or service providers, or automated teller machines;
                     ‘‘(ii) issued in a requested amount, whether or
                not that amount may, at the option of the issuer,
                be increased in value or reloaded if requested by the
                holder;
                     ‘‘(iii) purchased or loaded on a prepaid basis; and
                     ‘‘(iv) honored, upon presentation, by merchants for
                goods or services, or at automated teller machines.
                ‘‘(B) GIFT CERTIFICATE.—The term ‘gift certificate’
          means an electronic promise that is—
                     ‘‘(i) redeemable at a single merchant or an affili-
                ated group of merchants that share the same name,
                mark, or logo;
                     ‘‘(ii) issued in a specified amount that may not
                be increased or reloaded;
                     ‘‘(iii) purchased on a prepaid basis in exchange
                for payment; and
                          H. R. 627—19

                  ‘‘(iv) honored upon presentation by such single
            merchant or affiliated group of merchants for goods
            or services.
            ‘‘(C) STORE GIFT CARD.—The term ‘store gift card’
      means an electronic promise, plastic card, or other payment
      code or device that is—
                  ‘‘(i) redeemable at a single merchant or an affili-
            ated group of merchants that share the same name,
            mark, or logo;
                  ‘‘(ii) issued in a specified amount, whether or not
            that amount may be increased in value or reloaded
            at the request of the holder;
                  ‘‘(iii) purchased on a prepaid basis in exchange
            for payment; and
                  ‘‘(iv) honored upon presentation by such single
            merchant or affiliated group of merchants for goods
            or services.
            ‘‘(D) EXCLUSIONS.—The terms ‘general-use prepaid
      card’, ‘gift certificate’, and ‘store gift card’ do not include
      an electronic promise, plastic card, or payment code or
      device that is—
                  ‘‘(i) used solely for telephone services;
                  ‘‘(ii) reloadable and not marketed or labeled as
            a gift card or gift certificate;
                  ‘‘(iii) a loyalty, award, or promotional gift card,
            as defined by the Board;
                  ‘‘(iv) not marketed to the general public;
                  ‘‘(v) issued in paper form only (including for tickets
            and events); or
                  ‘‘(vi) redeemable solely for admission to events or
            venues at a particular location or group of affiliated
            locations, which may also include services or goods
            obtainable—
                         ‘‘(I) at the event or venue after admission;
                  or
                         ‘‘(II) in conjunction with admission to such
                  events or venues, at specific locations affiliated
                  with and in geographic proximity to the event
                  or venue.
      ‘‘(3) SERVICE FEE.—
            ‘‘(A) IN GENERAL.—The term ‘service fee’ means a peri-
      odic fee, charge, or penalty for holding or use of a gift
      certificate, store gift card, or general-use prepaid card.
            ‘‘(B) EXCLUSION.—With respect to a general-use pre-
      paid card, the term ‘service fee’ does not include a one-
      time initial issuance fee.
‘‘(b) PROHIBITION ON IMPOSITION OF FEES OR CHARGES.—
      ‘‘(1) IN GENERAL.—Except as provided under paragraphs
(2) through (4), it shall be unlawful for any person to impose
a dormancy fee, an inactivity charge or fee, or a service fee
with respect to a gift certificate, store gift card, or general-
use prepaid card.
      ‘‘(2) EXCEPTIONS.—A dormancy fee, inactivity charge or
fee, or service fee may be charged with respect to a gift certifi-
cate, store gift card, or general-use prepaid card, if—
                             H. R. 627—20

               ‘‘(A) there has been no activity with respect to the
         certificate or card in the 12-month period ending on the
         date on which the charge or fee is imposed;
               ‘‘(B) the disclosure requirements of paragraph (3) have
         been met;
               ‘‘(C) not more than one fee may be charged in any
         given month; and
               ‘‘(D) any additional requirements that the Board may
         establish through rulemaking under subsection (d) have
         been met.
         ‘‘(3) DISCLOSURE REQUIREMENTS.—The disclosure require-
   ments of this paragraph are met if—
               ‘‘(A) the gift certificate, store gift card, or general-
         use prepaid card clearly and conspicuously states—
                     ‘‘(i) that a dormancy fee, inactivity charge or fee,
               or service fee may be charged;
                     ‘‘(ii) the amount of such fee or charge;
                     ‘‘(iii) how often such fee or charge may be assessed;
               and
                     ‘‘(iv) that such fee or charge may be assessed for
               inactivity; and
               ‘‘(B) the issuer or vendor of such certificate or card
         informs the purchaser of such charge or fee before such
         certificate or card is purchased, regardless of whether the
         certificate or card is purchased in person, over the Internet,
         or by telephone.
         ‘‘(4) EXCLUSION.—The prohibition under paragraph (1) shall
   not apply to any gift certificate—
               ‘‘(A) that is distributed pursuant to an award, loyalty,
         or promotional program, as defined by the Board; and
               ‘‘(B) with respect to which, there is no money or other
         value exchanged.
   ‘‘(c) PROHIBITION ON SALE OF GIFT CARDS WITH EXPIRATION
DATES.—
         ‘‘(1) IN GENERAL.—Except as provided under paragraph
   (2), it shall be unlawful for any person to sell or issue a
   gift certificate, store gift card, or general-use prepaid card that
   is subject to an expiration date.
         ‘‘(2) EXCEPTIONS.—A gift certificate, store gift card, or gen-
   eral-use prepaid card may contain an expiration date if—
               ‘‘(A) the expiration date is not earlier than 5 years
         after the date on which the gift certificate was issued,
         or the date on which card funds were last loaded to a
         store gift card or general-use prepaid card; and
               ‘‘(B) the terms of expiration are clearly and conspicu-
         ously stated.
   ‘‘(d) ADDITIONAL RULEMAKING.—
         ‘‘(1) IN GENERAL.—The Board shall—
               ‘‘(A) prescribe regulations to carry out this section,
         in addition to any other rules or regulations required by
         this title, including such additional requirements as appro-
         priate relating to the amount of dormancy fees, inactivity
         charges or fees, or service fees that may be assessed and
         the amount of remaining value of a gift certificate, store
         gift card, or general-use prepaid card below which such
         charges or fees may be assessed; and
                             H. R. 627—21

              ‘‘(B) shall determine the extent to which the individual
        definitions and provisions of the Electronic Fund Transfer
        Act or Regulation E should apply to general-use prepaid
        cards, gift certificates, and store gift cards.
        ‘‘(2) CONSULTATION.—In prescribing regulations under this
    subsection, the Board shall consult with the Federal Trade
    Commission.
        ‘‘(3) TIMING; EFFECTIVE DATE.—The regulations required
    by this subsection shall be issued in final form not later than
    9 months after the date of enactment of the Credit CARD
    Act of 2009.’’.
SEC. 402. RELATION TO STATE LAWS.
      Section 920 of the Electronic Fund Transfer Act (as redesig-
nated by this title) is amended by inserting ‘‘dormancy fees,
inactivity charges or fees, service fees, or expiration dates of gift
certificates, store gift cards, or general-use prepaid cards,’’ after
‘‘electronic fund transfers,’’.
SEC. 403. EFFECTIVE DATE.
     This title and the amendments made by this title shall become
effective 15 months after the date of enactment of this Act.

TITLE V—MISCELLANEOUS PROVISIONS
SEC. 501. STUDY AND REPORT ON INTERCHANGE FEES.
     (a) STUDY REQUIRED.—The Comptroller General of the United
States (in this section referred to as the ‘‘Comptroller’’) shall conduct
a study on use of credit by consumers, interchange fees, and their
effects on consumers and merchants.
     (b) SUBJECTS FOR REVIEW.—In conducting the study required
by this section, the Comptroller shall review—
          (1) the extent to which interchange fees are required to
     be disclosed to consumers and merchants, whether merchants
     are restricted from disclosing interchange or merchant discount
     fees, and how such fees are overseen by the Federal banking
     agencies or other regulators;
          (2) the ways in which the interchange system affects the
     ability of merchants of varying size to negotiate pricing with
     card associations and banks;
          (3) the costs and factors incorporated into interchange fees,
     such as advertising, bonus miles, and rewards, how such costs
     and factors vary among cards;
          (4) the consequences of the undisclosed nature of inter-
     change fees on merchants and consumers with regard to prices
     charged for goods and services;
          (5) how merchant discount fees compare to the credit losses
     and other costs that merchants incur to operate their own
     credit networks or store cards;
          (6) the extent to which the rules of payment card networks
     and their policies regarding interchange fees are accessible
     to merchants;
          (7) other jurisdictions where the central bank has regulated
     interchange fees and the impact on retail prices to consumers
     in such jurisdictions;
          (8) whether and to what extent merchants are permitted
     to discount for cash; and
                            H. R. 627—22

         (9) the extent to which interchange fees allow smaller
    financial institutions and credit unions to offer payment cards
    and compete against larger financial institutions.
    (c) REPORT REQUIRED.—Not later than 180 days after the date
of enactment of this Act, the Comptroller shall submit a report
to the Committee on Banking, Housing, and Urban Affairs of the
Senate and the Committee on Financial Services of the House
of Representatives containing a detailed summary of the findings
and conclusions of the study required by this section, together
with such recommendations for legislative or administrative actions
as may be appropriate.
SEC. 502. BOARD REVIEW OF CONSUMER CREDIT PLANS AND REGULA-
            TIONS.
     (a) REQUIRED REVIEW.—Not later than 2 years after the effec-
tive date of this Act and every 2 years thereafter, except as provided
in subsection (c)(2), the Board shall conduct a review, within the
limits of its existing resources available for reporting purposes,
of the consumer credit card market, including—
          (1) the terms of credit card agreements and the practices
     of credit card issuers;
          (2) the effectiveness of disclosure of terms, fees, and other
     expenses of credit card plans;
          (3) the adequacy of protections against unfair or deceptive
     acts or practices relating to credit card plans; and
          (4) whether or not, and to what extent, the implementation
     of this Act and the amendments made by this Act has affected—
               (A) cost and availability of credit, particularly with
          respect to non-prime borrowers;
               (B) the safety and soundness of credit card issuers;
               (C) the use of risk-based pricing; or
               (D) credit card product innovation.
     (b) SOLICITATION OF PUBLIC COMMENT.—In connection with
conducting the review required by subsection (a), the Board shall
solicit comment from consumers, credit card issuers, and other
interested parties, such as through hearings or written comments.
     (c) REGULATIONS.—
          (1) NOTICE.—Following the review required by subsection
     (a), the Board shall publish a notice in the Federal Register
     that—
               (A) summarizes the review, the comments received
          from the public solicitation, and other evidence gathered
          by the Board, such as through consumer testing or other
          research; and
               (B) either—
                    (i) proposes new or revised regulations or
               interpretations to update or revise disclosures and
               protections for consumer credit cards, as appropriate;
               or
                    (ii) states the reason for the determination of the
               Board that new or revised regulations are not nec-
               essary.
          (2) REVISION OF REVIEW PERIOD FOLLOWING MATERIAL REVI-
     SION OF REGULATIONS.—In the event that the Board materially
     revises regulations on consumer credit card plans, a review
     need not be conducted until 2 years after the effective date
     of the revised regulations, which thereafter shall be treated
                            H. R. 627—23

     as the new date for the biennial review required by subsection
     (a).
     (d) BOARD REPORT TO THE CONGRESS.—The Board shall report
to Congress not less frequently than every 2 years, except as pro-
vided in subsection (c)(2), on the status of its most recent review,
its efforts to address any issues identified from the review, and
any recommendations for legislation.
     (e) ADDITIONAL REPORTING.—The Federal banking agencies (as
that term is defined in section 3 of the Federal Deposit Insurance
Act) and the Federal Trade Commission shall provide annually
to the Board, and the Board shall include in its annual report
to Congress under section 10 of the Federal Reserve Act, information
about the supervisory and enforcement activities of the agencies
with respect to compliance by credit card issuers with applicable
Federal consumer protection statutes and regulations, including—
          (1) this Act, the amendments made by this Act, and regula-
     tions prescribed under this Act and such amendments; and
          (2) section 5 of the Federal Trade Commission Act, and
     regulations prescribed under the Federal Trade Commission
     Act, including part 227 of title 12 of the Code of Federal
     Regulations, as prescribed by the Board (referred to as ‘‘Regula-
     tion AA’’).
SEC. 503. STORED VALUE.
     (a) IN GENERAL.—Not later than 270 days after the date of
enactment of this Act, the Secretary of the Treasury, in consultation
with the Secretary of Homeland Security, shall issue regulations
in final form implementing the Bank Secrecy Act, regarding the
sale, issuance, redemption, or international transport of stored
value, including stored value cards.
     (b) CONSIDERATION OF INTERNATIONAL TRANSPORT.—Regula-
tions under this section regarding international transport of stored
value may include reporting requirements pursuant to section 5316
of title 31, United States Code.
     (c) EMERGING METHODS FOR TRANSMITTAL AND STORAGE IN
ELECTRONIC FORM.—Regulations under this section shall take into
consideration current and future needs and methodologies for
transmitting and storing value in electronic form.
SEC. 504. PROCEDURE FOR TIMELY SETTLEMENT OF ESTATES OF
           DECEDENT OBLIGORS.
    (a) IN GENERAL.—Chapter 2 of the Truth in Lending Act (
U.S.C. 1631 et seq.) is amended by adding at the end the following
new section:
‘‘§ 140A Procedure for timely settlement of estates of
            decedent obligors
     ‘‘The Board, in consultation with the Federal Trade Commission
and each other agency referred to in section 108(a), shall prescribe
regulations to require any creditor, with respect to any credit card
account under an open end consumer credit plan, to establish proce-
dures to ensure that any administrator of an estate of any deceased
obligor with respect to such account can resolve outstanding credit
balances in a timely manner.’’.
                                    H. R. 627—24

    (b) CLERICAL AMENDMENT.—The table of sections for chapter
2 of the Truth in Lending Act is amended by inserting after the
item relating to section 140 the following new item:
‘‘140A. Procedure for timely settlement of estates of decedent obligors’.’’.

SEC. 505. REPORT TO CONGRESS ON REDUCTIONS OF CONSUMER
           CREDIT CARD LIMITS BASED ON CERTAIN INFORMATION
           AS TO EXPERIENCE OR TRANSACTIONS OF THE CON-
           SUMER.
     (a) REPORT ON CREDITOR PRACTICES REQUIRED.—Before the
end of the 1-year period beginning on the date of enactment of
this Act, the Board, in consultation with the Comptroller of the
Currency, the Director of the Office of Thrift Supervision, the Fed-
eral Deposit Insurance Corporation, the National Credit Union
Administration Board, and the Federal Trade Commission, shall
submit a report to the Committee on Financial Services of the
House of Representatives and the Committee on Banking, Housing,
and Urban Affairs of the Senate on the extent to which, during
the 3-year period ending on such date of enactment, creditors have
reduced credit limits or raised interest rates applicable to credit
card accounts under open end consumer credit plans based on—
          (1) the geographic location where a credit transaction with
     the consumer took place, or the identity of the merchant
     involved in the transaction;
          (2) the credit transactions of the consumer, including the
     type of credit transaction, the type of items purchased in such
     transaction, the price of items purchased in such transaction,
     any change in the type or price of items purchased in such
     transactions, and other data pertaining to the use of such
     credit card account by the consumer; and
          (3) the identity of the mortgage creditor which extended
     or holds the mortgage loan secured by the primary residence
     of the consumer.
     (b) OTHER INFORMATION.—The report required under subsection
(a) shall also include—
          (1) the number of creditors that have engaged in the prac-
     tices described in subsection (a);
          (2) the extent to which the practices described in subsection
     (a) have an adverse impact on minority or low-income con-
     sumers;
          (3) any other relevant information regarding such practices;
     and
          (4) recommendations to the Congress on any regulatory
     or statutory changes that may be needed to restrict or prevent
     such practices.
SEC. 506. BOARD REVIEW OF SMALL BUSINESS CREDIT PLANS AND
           RECOMMENDATIONS.
     (a) REQUIRED REVIEW.—Not later than 9 months after the
date of enactment of this Act, the Board shall conduct a review
of the use of credit cards by businesses with not more than 50
employees (in this section referred to as ‘‘small businesses’’) and
the credit card market for small businesses, including—
         (1) the terms of credit card agreements for small businesses
     and the practices of credit card issuers relating to small
     businesses;
                            H. R. 627—25

          (2) the adequacy of disclosures of terms, fees, and other
     expenses of credit card plans for small businesses;
          (3) the adequacy of protections against unfair or deceptive
     acts or practices relating to credit card plans for small
     businesses;
          (4) the cost and availability of credit for small businesses,
     particularly with respect to non-prime borrowers;
          (5) the use of risk-based pricing for small businesses;
          (6) credit card product innovation relating to small
     businesses; and
          (7) the extent to which small business owners use personal
     credit cards to fund their business operations.
     (b) RECOMMENDATIONS.—Following the review required by sub-
section (a), the Board shall, not later than 12 months after the
date of enactment of this Act—
          (1) provide a report to Congress that summarizes the review
     and other evidence gathered by the Board, such as through
     consumer testing or other research, and
          (2) make recommendations for administrative or legislative
     initiatives to provide protections for credit card plans for small
     businesses, as appropriate.
SEC. 507. SMALL BUSINESS INFORMATION SECURITY TASK FORCE.
     (a) DEFINITIONS.—In this section—
          (1) the terms ‘‘Administration’’ and ‘‘Administrator’’ mean
     the Small Business Administration and the Administrator
     thereof, respectively;
          (2) the term ‘‘small business concern’’ has the same
     meaning as in section 3 of the Small Business Act (15 U.S.C.
     632); and
          (3) the term ‘‘task force’’ means the task force established
     under subsection (b).
     (b) ESTABLISHMENT.—The Administrator shall, in conjunction
with the Secretary of Homeland Security, establish a task force,
to be known as the ‘‘Small Business Information Security Task
Force’’, to address the information technology security needs of
small business concerns and to help small business concerns prevent
the loss of credit card data.
     (c) DUTIES.—The task force shall—
          (1) identify—
               (A) the information technology security needs of small
          business concerns; and
               (B) the programs and services provided by the Federal
          Government, State Governments, and nongovernment
          organizations that serve those needs;
          (2) assess the extent to which the programs and services
     identified under paragraph (1)(B) serve the needs identified
     under paragraph (1)(A);
          (3) make recommendations to the Administrator on how
     to more effectively serve the needs identified under paragraph
     (1)(A) through—
               (A) programs and services identified under paragraph
          (1)(B); and
               (B) new programs and services promoted by the task
          force;
          (4) make recommendations on how the Administrator may
     promote—
                           H. R. 627—26

               (A) new programs and services that the task force
          recommends under paragraph (3)(B); and
               (B) programs and services identified under paragraph
          (1)(B);
          (5) make recommendations on how the Administrator may
     inform and educate with respect to—
               (A) the needs identified under paragraph (1)(A);
               (B) new programs and services that the task force
          recommends under paragraph (3)(B); and
               (C) programs and services identified under paragraph
          (1)(B);
          (6) make recommendations on how the Administrator may
     more effectively work with public and private interests to
     address the information technology security needs of small
     business concerns; and
          (7) make recommendations on the creation of a permanent
     advisory board that would make recommendations to the
     Administrator on how to address the information technology
     security needs of small business concerns.
     (d) INTERNET WEBSITE RECOMMENDATIONS.—The task force
shall make recommendations to the Administrator relating to the
establishment of an Internet website to be used by the Administra-
tion to receive and dispense information and resources with respect
to the needs identified under subsection (c)(1)(A) and the programs
and services identified under subsection (c)(1)(B). As part of the
recommendations, the task force shall identify the Internet sites
of appropriate programs, services, and organizations, both public
and private, to which the Internet website should link.
     (e) EDUCATION PROGRAMS.—The task force shall make rec-
ommendations to the Administrator relating to developing addi-
tional education materials and programs with respect to the needs
identified under subsection (c)(1)(A).
     (f) EXISTING MATERIALS.—The task force shall organize and
distribute existing materials that inform and educate with respect
to the needs identified under subsection (c)(1)(A) and the programs
and services identified under subsection (c)(1)(B).
     (g) COORDINATION WITH PUBLIC AND PRIVATE SECTOR.—In car-
rying out its responsibilities under this section, the task force
shall coordinate with, and may accept materials and assistance
as it determines appropriate from, public and private entities,
including—
          (1) any subordinate officer of the Administrator;
          (2) any organization authorized by the Small Business Act
     to provide assistance and advice to small business concerns;
          (3) other Federal agencies, their officers, or employees;
     and
          (4) any other organization, entity, or person not described
     in paragraph (1), (2), or (3).
     (h) APPOINTMENT OF MEMBERS.—
          (1) CHAIRPERSON AND VICE-CHAIRPERSON.—The task force
     shall have—
               (A) a Chairperson, appointed by the Administrator;
          and
               (B) a Vice-Chairperson, appointed by the Adminis-
          trator, in consultation with appropriate nongovernmental
          organizations, entities, or persons.
          (2) MEMBERS.—
                       H. R. 627—27

          (A) CHAIRPERSON AND VICE-CHAIRPERSON.—The Chair-
     person and the Vice-Chairperson shall serve as members
     of the task force.
          (B) ADDITIONAL MEMBERS.—
               (i) IN GENERAL.—The task force shall have addi-
          tional members, each of whom shall be appointed by
          the Chairperson, with the approval of the Adminis-
          trator.
               (ii) NUMBER OF MEMBERS.—The number of addi-
          tional members shall be determined by the Chair-
          person, in consultation with the Administrator, except
          that—
                    (I) the additional members shall include, for
               each of the groups specified in paragraph (3), at
               least 1 member appointed from within that group;
               and
                    (II) the number of additional members shall
               not exceed 13.
     (3) GROUPS REPRESENTED.—The groups specified in this
paragraph are—
          (A) subject matter experts;
          (B) users of information technologies within small busi-
     ness concerns;
          (C) vendors of information technologies to small busi-
     ness concerns;
          (D) academics with expertise in the use of information
     technologies to support business;
          (E) small business trade associations;
          (F) Federal, State, or local agencies, including the
     Department of Homeland Security, engaged in securing
     cyberspace; and
          (G) information technology training providers with
     expertise in the use of information technologies to support
     business.
     (4) POLITICAL AFFILIATION.—The appointments under this
subsection shall be made without regard to political affiliation.
(i) MEETINGS.—
     (1) FREQUENCY.—The task force shall meet at least 2 times
per year, and more frequently if necessary to perform its duties.
     (2) QUORUM.—A majority of the members of the task force
shall constitute a quorum.
     (3) LOCATION.—The Administrator shall designate, and
make available to the task force, a location at a facility under
the control of the Administrator for use by the task force
for its meetings.
     (4) MINUTES.—
          (A) IN GENERAL.—Not later than 30 days after the
     date of each meeting, the task force shall publish the
     minutes of the meeting in the Federal Register and shall
     submit to the Administrator any findings or recommenda-
     tions approved at the meeting.
          (B) SUBMISSION TO CONGRESS.—Not later than 60 days
     after the date that the Administrator receives minutes
     under subparagraph (A), the Administrator shall submit
     to the Committee on Small Business and Entrepreneurship
     of the Senate and the Committee on Small Business of
                            H. R. 627—28

           the House of Representatives such minutes, together with
           any comments the Administrator considers appropriate.
           (5) FINDINGS.—
                (A) IN GENERAL.—Not later than the date on which
           the task force terminates under subsection (m), the task
           force shall submit to the Administrator a final report on
           any findings and recommendations of the task force
           approved at a meeting of the task force.
                (B) SUBMISSION TO CONGRESS.—Not later than 90 days
           after the date on which the Administrator receives the
           report under subparagraph (A), the Administrator shall
           submit to the Committee on Small Business and
           Entrepreneurship of the Senate and the Committee on
           Small Business of the House of Representatives the full
           text of the report submitted under subparagraph (A),
           together with any comments the Administrator considers
           appropriate.
      (j) PERSONNEL MATTERS.—
           (1) COMPENSATION OF MEMBERS.—Each member of the task
      force shall serve without pay for their service on the task
      force.
           (2) TRAVEL EXPENSES.—Each member of the task force shall
      receive travel expenses, including per diem in lieu of subsist-
      ence, in accordance with applicable provisions under subchapter
      I of chapter 57 of title 5, United States Code.
           (3) DETAIL OF SBA EMPLOYEES.—The Administrator may
      detail, without reimbursement, any of the personnel of the
      Administration to the task force to assist it in carrying out
      the duties of the task force. Such a detail shall be without
      interruption or loss of civil status or privilege.
           (4) SBA SUPPORT OF THE TASK FORCE.—Upon the request
      of the task force, the Administrator shall provide to the task
      force the administrative support services that the Administrator
      and the Chairperson jointly determine to be necessary for the
      task force to carry out its duties.
      (k) NOT SUBJECT TO FEDERAL ADVISORY COMMITTEE ACT.—
The Federal Advisory Committee Act (5 U.S.C. App.) shall not
apply to the task force.
      (l) STARTUP DEADLINES.—The initial appointment of the mem-
bers of the task force shall be completed not later than 90 days
after the date of enactment of this Act, and the first meeting
of the task force shall be not later than 180 days after the date
of enactment of this Act.
      (m) TERMINATION.—
           (1) IN GENERAL.—Except as provided in paragraph (2), the
      task force shall terminate at the end of fiscal year 2013.
           (2) EXCEPTION.—If, as of the termination date under para-
      graph (1), the task force has not complied with subsection
      (i)(4) with respect to 1 or more meetings, then the task force
      shall continue after the termination date for the sole purpose
      of achieving compliance with subsection (i)(4) with respect to
      those meetings.
      (n) AUTHORIZATION OF APPROPRIATIONS.—There is authorized
to be appropriated to carry out this section $300,000 for each
of fiscal years 2010 through 2013.
                            H. R. 627—29
SEC. 508. STUDY AND REPORT ON EMERGENCY PIN TECHNOLOGY.
     (a) IN GENERAL.—The Federal Trade Commission, in consulta-
tion with the Attorney General of the United States and the United
States Secret Service, shall conduct a study on the cost-effectiveness
of making available at automated teller machines technology that
enables a consumer that is under duress to electronically alert
a local law enforcement agency that an incident is taking place
at such automated teller machine, including—
          (1) an emergency personal identification number that would
     summon a local law enforcement officer to an automated teller
     machine when entered into such automated teller machine;
     and
          (2) a mechanism on the exterior of an automated teller
     machine that, when pressed, would summon a local law enforce-
     ment to such automated teller machine.
     (b) CONTENTS OF STUDY.—The study required under subsection
(a) shall include—
          (1) an analysis of any technology described in subsection
     (a) that is currently available or under development;
          (2) an estimate of the number and severity of any crimes
     that could be prevented by the availability of such technology;
          (3) the estimated costs of implementing such technology;
     and
          (4) a comparison of the costs and benefits of not fewer
     than 3 types of such technology.
     (c) REPORT.—Not later than 9 months after the date of enact-
ment of this Act, the Federal Trade Commission shall submit to
Congress a report on the findings of the study required under
this section that includes such recommendations for legislative
action as the Commission determines appropriate.
SEC. 509. STUDY AND REPORT ON THE MARKETING OF PRODUCTS
           WITH CREDIT OFFERS.
     (a) STUDY.—The Comptroller General of the United States shall
conduct a study on the terms, conditions, marketing, and value
to consumers of products marketed in conjunction with credit card
offers, including—
          (1) debt suspension agreements;
          (2) debt cancellation agreements; and
          (3) credit insurance products.
     (b) AREAS OF CONCERN.—The study conducted under this sec-
tion shall evaluate—
          (1) the suitability of the offer of products described in
     subsection (a) for target customers;
          (2) the predatory nature of such offers; and
          (3) specifically for debt cancellation or suspension agree-
     ments and credit insurance products, loss rates compared to
     more traditional insurance products.
     (c) REPORT TO CONGRESS.—The Comptroller shall submit a
report to Congress on the results of the study required by this
section not later than December 31, 2010.
SEC. 510. FINANCIAL AND ECONOMIC LITERACY.
   (a) REPORT ON FEDERAL FINANCIAL AND ECONOMIC LITERACY
EDUCATION PROGRAMS.—
       (1) IN GENERAL.—Not later than 9 months after the date
   of enactment of this Act, the Secretary of Education and the
                           H. R. 627—30

    Director of the Office of Financial Education of the Department
    of the Treasury shall coordinate with the President’s Advisory
    Council on Financial Literacy—
              (A) to evaluate and compile a comprehensive summary
         of all existing Federal financial and economic literacy edu-
         cation programs, as of the time of the report; and
              (B) to prepare and submit a report to Congress on
         the findings of the evaluations.
         (2) CONTENTS.—The report required by this subsection shall
    address, at a minimum—
              (A) the 2008 recommendations of the President’s
         Advisory Council on Financial Literacy;
              (B) existing Federal financial and economic literacy
         education programs for grades kindergarten through grade
         12, and annual funding to support these programs;
              (C) existing Federal postsecondary financial and eco-
         nomic literacy education programs and annual funding to
         support these programs;
              (D) the current financial and economic literacy edu-
         cation needs of adults, and in particular, low- and mod-
         erate-income adults;
              (E) ways to incorporate and disseminate best practices
         and high quality curricula in financial and economic lit-
         eracy education; and
              (F) specific recommendations on sources of revenue
         to support financial and economic literacy education activi-
         ties with a specific analysis of the potential use of credit
         card transaction fees.
    (b) STRATEGIC PLAN.—
         (1) IN GENERAL.—The Secretary of Education and the
    Director of the Office of Financial Education of the Department
    of the Treasury shall coordinate with the President’s Advisory
    Council on Financial Literacy to develop a strategic plan to
    improve and expand financial and economic literacy education.
         (2) CONTENTS.—The plan developed under this subsection
    shall—
              (A) incorporate findings from the report and evalua-
         tions of existing Federal financial and economic literacy
         education programs under subsection (a); and
              (B) include proposals to improve, expand, and support
         financial and economic literacy education based on the
         findings of the report and evaluations.
         (3) PRESENTATION TO CONGRESS.—The plan developed
    under this subsection shall be presented to Congress not later
    than 6 months after the date on which the report under sub-
    section (a) is submitted to Congress.
    (c) EFFECTIVE DATE.—Notwithstanding section 3, this section
shall become effective on the date of enactment of this Act.
SEC. 511. FEDERAL TRADE COMMISSION RULEMAKING ON MORTGAGE
            LENDING.
   (a) IN GENERAL.—Section 626 of division D of the Omnibus
Appropriations Act, 2009 (Public Law 111–8) is amended—
        (1) in subsection (a)—
             (A) by striking ‘‘Within’’ and inserting ‘‘(1) Within’’;
             (B) in paragraph (1), as designated by subparagraph
        (A), by inserting after the first sentence the following:
                              H. R. 627—31

           ‘‘Such rulemaking shall relate to unfair or deceptive acts
           or practices regarding mortgage loans, which may include
           unfair or deceptive acts or practices involving loan modifica-
           tion and foreclosure rescue services.’’; and
                 (C) by adding at the end the following:
           ‘‘(2) Paragraph (1) shall not be construed to authorize the
     Federal Trade Commission to promulgate a rule with respect
     to an entity that is not subject to enforcement of the Federal
     Trade Commission Act (15 U.S.C. 41 et seq.) by the Commis-
     sion.
           ‘‘(3) Before issuing a final rule pursuant to the proceeding
     initiated under paragraph (1), the Federal Trade Commission
     shall consult with the Federal Reserve Board concerning any
     portion of the proposed rule applicable to acts or practices
     to which the provisions of the Truth in Lending Act (15 U.S.C.
     1601 et seq.) may apply.
           ‘‘(4) The Federal Trade Commission shall enforce the rules
     issued under paragraph (1) in the same manner, by the same
     means, and with the same jurisdiction, powers, and duties
     as though all applicable terms and provisions of the Federal
     Trade Commission Act (15 U.S.C. 41 et seq.) were incorporated
     into and made part of this section.’’; and
           (2) in subsection (b)—
                 (A) by striking so much as precedes paragraph (2)
           and inserting the following:
     ‘‘(b)(1) Except as provided in paragraph (6), in any case in
which the attorney general of a State has reason to believe that
an interest of the residents of that State has been or is threatened
or adversely affected by the engagement of any person subject
to a rule prescribed under subsection (a) in a practice that violates
such rule, the State, as parens patriae, may bring a civil action
on behalf of the residents of the State in an appropriate district
court of the United States or other court of competent jurisdiction—
           ‘‘(A) to enjoin that practice;
           ‘‘(B) to enforce compliance with the rule;
           ‘‘(C) to obtain damages, restitution, or other compensation
     on behalf of residents of the State; or
           ‘‘(D) to obtain penalties and relief provided by the Federal
     Trade Commission Act and such other relief as the court con-
     siders appropriate.’’; and
                 (B) in paragraphs (2), (3), and (6), by striking ‘‘Commis-
           sion’’ each place it appears and inserting ‘‘primary Federal
           regulator’’.
     (b) EFFECTIVE DATE.—The amendments made by subsection
(a) shall take effect on March 12, 2009.
SEC. 512. PROTECTING AMERICANS FROM VIOLENT CRIME.
    (a) CONGRESSIONAL FINDINGS.—Congress finds the following:
        (1) The Second Amendment to the Constitution provides
    that ‘‘the right of the people to keep and bear Arms, shall
    not be infringed’’.
        (2) Section 2.4(a)(1) of title 36, Code of Federal Regulations,
    provides that ‘‘except as otherwise provided in this section
    and parts 7 (special regulations) and 13 (Alaska regulations),
    the following are prohibited: (i) Possessing a weapon, trap
    or net (ii) Carrying a weapon, trap or net (iii) Using a weapon,
    trap or net’’.
                            H. R. 627—32

          (3) Section 27.42 of title 50, Code of Federal Regulations,
     provides that, except in special circumstances, citizens of the
     United States may not ‘‘possess, use, or transport firearms
     on national wildlife refuges’’ of the United States Fish and
     Wildlife Service.
          (4) The regulations described in paragraphs (2) and (3)
     prevent individuals complying with Federal and State laws
     from exercising the second amendment rights of the individuals
     while at units of—
               (A) the National Park System; and
               (B) the National Wildlife Refuge System.
          (5) The existence of different laws relating to the transpor-
     tation and possession of firearms at different units of the
     National Park System and the National Wildlife Refuge System
     entrapped law-abiding gun owners while at units of the
     National Park System and the National Wildlife Refuge System.
          (6) Although the Bush administration issued new regula-
     tions relating to the Second Amendment rights of law-abiding
     citizens in units of the National Park System and National
     Wildlife Refuge System that went into effect on January 9,
     2009—
               (A) on March 19, 2009, the United States District
          Court for the District of Columbia granted a preliminary
          injunction with respect to the implementation and enforce-
          ment of the new regulations; and
               (B) the new regulations—
                    (i) are under review by the administration; and
                    (ii) may be altered.
          (7) Congress needs to weigh in on the new regulations
     to ensure that unelected bureaucrats and judges cannot again
     override the Second Amendment rights of law-abiding citizens
     on 83,600,000 acres of National Park System land and
     90,790,000 acres of land under the jurisdiction of the United
     States Fish and Wildlife Service.
          (8) The Federal laws should make it clear that the second
     amendment rights of an individual at a unit of the National
     Park System or the National Wildlife Refuge System should
     not be infringed.
     (b) PROTECTING THE RIGHT OF INDIVIDUALS TO BEAR ARMS
IN UNITS OF THE NATIONAL PARK SYSTEM AND THE NATIONAL WILD-
LIFE REFUGE SYSTEM.—The Secretary of the Interior shall not
promulgate or enforce any regulation that prohibits an individual
from possessing a firearm including an assembled or functional
firearm in any unit of the National Park System or the National
Wildlife Refuge System if—
          (1) the individual is not otherwise prohibited by law from
     possessing the firearm; and
          (2) the possession of the firearm is in compliance with
     the law of the State in which the unit of the National Park
     System or the National Wildlife Refuge System is located.
SEC. 513. GAO STUDY AND REPORT ON FLUENCY IN THE ENGLISH
           LANGUAGE AND FINANCIAL LITERACY.
    (a) STUDY.—The Comptroller General of the United States shall
conduct a study examining—
         (1) the relationship between fluency in the English lan-
    guage and financial literacy; and
                           H. R. 627—33

          (2) the extent, if any, to which individuals whose native
     language is a language other than English are impeded in
     their conduct of their financial affairs.
     (b) REPORT.—Not later than 1 year after the date of enactment
of this Act, the Comptroller General of the United States shall
submit a report to the Committee on Banking, Housing, and Urban
Affairs of the Senate and the Committee on Financial Services
of the House of Representatives that contains a detailed summary
of the findings and conclusions of the study required under sub-
section (a).




                         Speaker of the House of Representatives.




                      Vice President of the United States and
                                           President of the Senate.

								
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